US data supports global markets

New job openings data released in the US signaled that the gradual cooling in the labor market desired by the Fed is taking place Asian stock indices rose after data indicating that the employment market in the US is gradually cooling supported expectations that the Fed will cut interest rates next year. After the S&P 500 index in the US closed little changed on Tuesday, US and European futures indices gained value this morning. The US 10-year bond yield rose 3 basis points to 4.19% this morning after a 9 basis point decline on Tuesday. The Bloomberg Dollar Index, which rose 0.23% on Tuesday, was flat on a new trading day. Cooling in the US employment market The JOLTS data announced ahead of the critical nonfarm payrolls and unemployment rate data to be released in the US on Friday signaled that the gradual cooling in the labor market desired by the Fed is taking place. Newly opened available jobs in the country fell to 8.7 million in October, the lowest level since the beginning of 2021. The September data was also revised downward from 9.55 million to 9.35 million. The October data was also below expectations of 9.3 million. The US ISM data for November also indicated that inflation in the service sector had begun to soften. Wells Fargo & Co. economists Tim Quinlan and Shannon Seery Grein said these two figures show that the Fed is moving toward its long-term target levels for employment and price stability. “Prices are continuing to rise, but at a slower pace,” the economists said, adding that “the labor market is also becoming less tight, and therefore there is less upward pressure on wages.”